Working backward from a payment you can afford
Instead of starting with a car price and hoping the payment fits, this tool starts from what you can safely afford each month — a percentage of income minus your existing debts — and works backward to the loan, and then the price, that payment supports. That order keeps you from stretching your budget just because a dealer says you "qualify" for more.
Once you have a price in mind
Use the Car Loan Calculator to price a specific vehicle — it adds sales tax, fees and any trade-in to show the exact loan and payment for that car, rather than the budget-based estimate here.
Frequently asked questions
How much of my income should go toward a car payment?
A common guideline is no more than 10–15% of your gross monthly income on the payment alone, with total car costs (payment, insurance, fuel, maintenance) staying under about 20%. Lower is safer, especially if your income varies.
Does this include insurance, fuel and maintenance?
No — this calculates the loan and payment only. Budget separately for insurance, fuel, maintenance and registration, which together often add hundreds per month on top of the loan payment.
How does a bigger down payment help?
Every dollar of down payment directly increases the car price you can afford without raising your monthly payment, and it reduces the loan amount you pay interest on — a strong lever if you can build one up before buying.
Should I use my gross or net income here?
Gross (pre-tax) income is standard for affordability guidelines like this one, matching how lenders typically evaluate applications. Just remember your actual take-home pay is lower, so budget the payment against your real cash flow too.
Last updated: June 2026